Skoda Celebrates Five Years In China

Skoda too is scoring big time from Chinese populated market celebrating its fifth year in producing cars in the region with some bold numbers.

Exactly 60 months after production of the SKODA Octavia began at Shanghai Volkswagen (SVW)’s premises, the company presents an impressive track record, having sold around 740,000 cars and soon to top the magical mark of 750,000 cars built locally. China accounts for 25 per cent of the brand’s worldwide sales. Currently, SKODA’s dealer network is about 400 strong with plans to increase this number to over 600 mid-term. Over the past five years, the brand has been expanding by leaps and bounds in China.

Being pumped up with these figures, Skoda is now looking at expanding business in China by lancing new models, expanding production capacity and strengthening dealer presence. China has central importance for SKODA’s 2018 growth strategy.

Skoda press release:

“For us, the past five years have been a success story without any other,” says SKODA CEO Winfried Vahland. “Together with our Chinese partners, we have raised the pace in all areas and turned the market into SKODA’s largest sales market with just three models. China has become a second home for SKODA,” says Vahland. “We have set the stage for further growth as we intend to raise our global sales to at least 1.5 million a year by 2018. This is why we will be introducing new models on the Chinese market from 2013. We will also be strengthening our sales presence and cooperating under the roof of Volkswagen Group and our joint venture partners to further increase capacities in China.”

Around 740,000 SKODAs delivered, successful cooperation with SVW In just five years, SKODA together with its partner Shanghai Volkswagen (SVW) delivered around 740,000 cars to customers. Soon, the 750,000th SKODA will roll off the line at SVW. “These are figures that make us proud because they show the capability of our entire team,” says SKODA CEO Vahland. “In 2007, SKODA was a manufacturer focussed on Europe. Only five years later, we have delivered around 740,000 cars to customers, a fantastic achievement for our company. We have managed to establish SKODA as a brand in just a few years in a market that is extremely competitive both in terms of quality and quantity,” says Vahland.

SKODA has been building on a close cooperation with Shanghai Volkswagen since the beginning of its activities in China. “SVW has been a reliable and competent partner for SKODA. We are grateful to SVW for a good and trusting cooperation over the past five years and we are looking forward to opening the next chapter of our Chinese success story with them,” says Vahland. SVW was founded in 1984. The company operates one of the most modern production facilities in China.

SKODA deliveries in China in more than eightfold increase since 2007 The start of production of SKODA’s Octavia model in July 2007 was the beginning of one of the most impressive development in recent automobile history. Between 2007 and 2011, SKODA raised its annual deliveries to customers in China about eightfold. From just over 27,000 cars in 2007, the brand’s deliveries rose to 220,000 in 2011. Numbers continued their upward trend in the first five months of 2012, with deliveries to customers in China rising by eight per cent to a new high of over 100,000 units.

China has been the brand’s strongest individual market since 2010 and has been so with only three models. The first model built and sold in the country was the Octavia in 2007. At almost half a million units produced, the Octavia is the most popular SKODA model in China. Since 2010, the Octavia has also been available in China as an environment-friendly Green Line version and as Octavia RS in a sporty guise. The Fabia saw its Chinese sales debut in 2008. This subcompact has also been available in China in an off-road version called the Fabia Scout. SKODA’s flagship the Superb has been sold on the Chinese market since 2009. In 2011, it not only achieved becoming the top seller in the premier middle class. China also accounted for over 40 per cent of the 116,800 Superbs sold worldwide, making it the biggest market for this model. In late 2011, China also saw a SKODA Superb 1.4 TSI DSG complete a record-breaking journey for the first time, a car drove from Shanghai to Beijing, or over 1,200 kilometres, on less than one tank filling.